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FTX is now doing a spot-margin borrowing/lending product which lets users: - earn interest by lending into pool - borrow to do margin trading on spot can't seem to find though any orderbook for matching (so i think it's just a pool), and if you lend out, you are locked for 6 hr

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help.ftx.com/hc/en-us/artic it's an auction every hour for the interest rates

help.ftx.com

Spot Margin Trading Explainer

Overview With spot margin trading, users can trade with leverage and go short on spot markets by borrowing from other users (lenders) on FTX, who are looking to earn yield on their assets. Rates ...

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and

just got linked to this explainer now which has cleared up some stuff -- so even if a user doesnt have "spot margin" enabled on account, they still go into USD negative and become a borrower right? and they are price-taker of whatever lenders have up

SBF

@SBF_FTX

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@austerity_sucks

So I think right now we're still using the old negative USD balance rules but will probably transition it over at some point

10:58 AM · Nov 26, 2020Twitter Web App

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and

as long as theres a solid offer that soaks up that extra demand should be fine, but if the variable rate spikes, bad ux for users accustomed to current fixed rate approach on balances lower than -30K